Shocking: Budapest is one of the poorest Central European capitals

Among the capitals of the post-Communist Central and Eastern Europen region, Budapest is the second poorest, following Zagreb. Meanwhile, Bucharest developed a lot. Why are the residents of Budapest considered poor? #budapest #budapestpurchasepower #budapesteconomy #wage

Hungary would need 900 years to reach the purchasing power level of Vienna, Austria’s capital, according to a survey conducted by Eurostat, the EU’s statistical office. Among the capitals of the post-Communist Central and Eastern Europen region, Budapest is the second poorest, following Zagreb. Meanwhile, Bucharest developed significantly between 2013 and 2021, preceding even Vienna.

Hungary and Budapest among the poorest in the EU

According to Eurostat’s latest survey, in 2021, the “net primary income per inhabitant was 20,700 purchasing power standard (PPS), up from 19,500 PPS in 2020” in the EU. The wealthiest NUTS 2 (nomenclature of territorial units for statistics) regions are in Germany (Oberbayern being the wealthiest in the EU), France, Belgium and the Netherlands. The poorest are in Eastern Europe, including Hungary’s Northeastern, Croatia’s Eastern regions and several Romanian and Bulgarian territories.

“The use of data in PPS, rather than in euro, takes into account the price level differences between countries. One PPS can buy the same amount of goods and services in each country, regardless of local price differences”, the Eurostat wrote.

According to 24.hu, Budapest’s result in the statistics is disappointing especially if we compare it with Bucharest. Only Zagreb is poorer than Budapest among the post-Communist countries of the region. However, the statistics are not entirely comparable because Slovenia’s and Bulgaria’s capitals are not regions. If they were alone in the statistics without their presumably lower-income surroundings, they would probably score better.

hungary budapest among most crowded cities tourism landscape hungary news
Photo: depositphotos.com

Bucharest’s development is impressive

Budapest’s lagging behind the other capitals is spectacular in the 2013-2021 period. The Hungarian capital could not precede any of the region’s capitals even though the difference between Budapest and Vienna, Warsaw or Bratislava (Pozsony) decreased. However, the enrichment of Sofia (and its region) and Prague was quicker than Budapest’s. Moreover, Bucharest emerged from the last but one position to the top.

Therefore, 444.hu wrote that Hungary needed more than 900 years to precede Vienna. Budapest needs “only” 30 years, but it’s important to note that the Austrian capital is Austria’s second poorest NUTS 2 region. Meanwhile, Budapest is Hungary’s wealthiest.

tourism Budapest Hungary Chain Bridge kató alpár
Photo: Daily News Hungary

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Featured image: depositphotos.com

3 Comments

  1. FACT.
    Hungary = of the 27 European Union country’s, rated 26th.
    Hungary – the pressurization of the “collapsing” Economy, on the Forint, it’s on-going de-valuation, the outlook continues, delivered to this “Place of Horror” in millions in Hungary, by the Orban – Fidesz Government.
    It WILL worsen.
    There is NOTHING from an Economic and Financial perspective, that includes the Central Bank of Hungary, that can be introduced to act in any way as a STABLIZER into the economy of Hungary.
    REMEMBER – no other (2) two individuals BEAR on there SHOULDERS the BLAME for the cataclysmic disaster as is the Economic & Financial current worsening downward trending position than – the Prime Minister of Hungary – Victor Mihaly. Orban and his “Dud” – Minister of Finance – Mihaly Varga.
    Hungary – we have been FAILED.

  2. What’s the point of a city being “rich” if most of that wealth is wasted on welfare programs for the lazy, the illegal aliens, etc.

    Whether Budapest is “poor” or not, it is a fact that it has a great public transportation system, it is clean, it is super safe, there is something for people of every kind of budget, and everything works.

    That is much more than can be said of very many, indeed most, “richer” European capital cities!

  3. Michael, this comparison has nothing at all to do with welfare spending, it’s measuring net income per inhabitant adjusted for local costs. Note that it’s net, after tax has been deducted, it’s what an individual can theoretically spend from their income.

    While I agree with most of what you wrote about Budapest, I cannot agree that it’s a city that caters to all budgets. The large discrepancy between the income of local residents and visitors means that increasingly service providers are targeting tourist wallets and the sort of bars, restaurants and ‘useful’ shops favoured by those on a limited local income are closing down. Your interpretation of ‘everything works’ may also be open to interpretation. Anyone dependent on a train or state healthcare may beg to differ but this is a nationwide problem.

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